Topic 4 Part A Flashcards
What benefits should be provided?
- Required Benefits: Social Insurance Programs
2. Basic Set of Benefits: Needs Analysis
Needs Analysis
- Needs of EEs
2. Loss Exposures
Needs Analysis: Loss Exposures
- Medical Expenses
2. Loss of Income
Beyond Basics Analysis
- Competition in particular industry for EEs
2. Bench Marking Analysis
Three Ways to Involve EEs in Design Process
- EE surveys.
- Benefit committees
- Focus Groups
Equity Issue of Design Process
Different benefit packages for EEs in different geographic regions
Shifts in Design Proces
- Used to be favorable tax treatment
- Now the needs of EEs are driving benefit plan design
- TEA: Transportation Equity Act
Work Life Benefits
- Child Care
- Convenience Benefits: Dry cleaning, banking
- Flexible Work Arrangements
Who Should Be Protected/Covered?
- Full Time/Active EEs
- Dependents of Full Time/Active EEs
- Part Time/Active EEs
- Former EEs and Dependents
- Terminated EEs and Dependents
- Disabled EEs and Dependents
Full Time/Active EEs
- Definition of Full Time/Active EEs
Depends of Full Time/Active EEs
- Spouse
- Legal Marriage
- Domestic Partnerships
- Children: Define maximum age of eligibility
Former EEs & Dependents
- Pension Plan/Retirement Plan
- OASDI
- Post Retirement Health Benefits (PPHB)
- PRLB
Terminated EEs/Dependents
- Severance Package
- UC Insurance
- COBRA Access, continuation coverage
Disabled EEs and Dependents
- Long and Short term disability
- Access to COBRA coverage
- Continue health coverage
- Continue Life insurance coverage
- 401(K) contributions and matches from ER??
What Options Will EEs Have?
- Traditional Design Plan
- Plans With Minimal Choice
- Opportunity to Purchase Optional Benefits
- Voluntary Benefits
- Section 125 Plan
Traditional Plan Design
- EEs have few options or choices if any
- “One Size fits all”
- Smaller ERs/Unionized Plans
Plans With Minimal Choice
- Retirement, life, disability, dental, AD&D
- Choice of Healthcare Plans
Opportunity to Purchase Optional Benefits or Additional Benefits
- Optional: Long Term Disability (LTO)
- EE pay all basis: Not taxed on benefits
- AD&D coverage: EE pay all basis
Dependent Coverage
- Health Insurance
- Life Insurance
- EE pay all basis: spouse/eligible dependents
Voluntary Benefits
- Any benefit offered through an ER on a group basis
- EE pays the full cost
- e.g. long term disability, AD&D
- Classic Voluntary Benefits
Classic Voluntary Benefits
- Group Auto Insurance
- Affinity Group
Affinity Group
- Markets to an already existing group
- Homeowners, Temple EEs
- Pet Insurance
- Group Universal Life (GUL)
- Mini Med or “Dread Disease Policy”
